Support

A cookie is a piece of data stored by your browser or device that helps websites like this one recognize return visitors. We use cookies to give you the best experience on BNA.com. Some cookies are also necessary for the technical operation of our website. If you continue browsing, you agree to this site’s use of cookies.

Events

Bloomberg Next marketing services allow clients to elevate their brands and extend their reach through our established and trusted expertise, enhanced with engaging event production, appealing design, and compelling messaging.

The regulator routinely fines telecom companies for failing to meet the requirements
set by the country's telecommunications law. But Brazilian telecom companies rarely
pay the fines. According to the regulator, companies paid less than 10 percent of
fines it issued between 2011 and 2015. Oi, Brazil's largest fixed line phone company,
racked up fines totaling 14.4 billion reals ($4.5 billion).

On Oct. 27, Anatel announced an agreement with Telefonica Brazil, a subsidiary of
Spain's Telefonica, S.A. that is the leading mobile phone operator in Brazil and number
two fixed phone company. Telefonica, which does business in Brazil as Vivo, agreed
to invest 4.8 billion reals and Anatel will write off 2.1 billion reals in unpaid
fines.

Under the agreement, Telefonica must install fiber optic broadband connections to
1.4 million homes in 100 cities over the next four years. It also committed to upgrade
its mobile phone network to replace second generation (2G)
services with 3G in 39 cities, offer 4G service in another 152 cities and expand its
support system for its fixed line service, affecting 260 cities. Finally, the company
must raise its quality of service rating from the current 68 percent to 100 percent.

Nonsensical Fines

Over the last year, the issue of unpaid fines came to a head, with Anatel threatening
to punish companies that don't pay their fines and the companies arguing that the
fines are nonsensical and unaffordable.

Telecom Brazil president Amos Genish told investors during an Oct. 25
earnings call that “smart” investment is helping Telefonica transition into a digital services
provider. “With falling voice-based and subscription TV revenues, we don't want to
invest in anything that represents the past,” he said.

With a new agreement in place, Telefonica and other companies will be able to avoid
investing in what some in the industry have called irrelevant services going forward
and avoid fines for failing to invest in the past.

New Investments

Telefonica released a statement Oct. 27 in which it called the agreement “positive
for the country,” adding that it “will direct a substantial financial volume for investments
in quality and important infrastructure projects such as an expansion of broadband
service which help reduce Brazil's digital gap.”

Anatel councilor Igor Vilas Boas de Freitas, who drew up the final agreement, said
Oct. 27 that it will accelerate the installation of superfast broadband service in
Brazil. He added that if Telefonica fails to meet its commitment set by the agreement,
the fines will be restored and doubled.

A spokesperson for Anatel said Oct. 28 the agency is interested in negotiating agreements
with other telecom companies but could not state whether talks have begun with another
company. The trade-off of investments for fines is supported by the Brazilian Telecommunications
Association (Telebrasil), which represents the telecom industry.

All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to books@bna.com.

Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)

Notify me when updates are available (No standing order will be created).

This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to research@bna.com.

Put me on standing order

Notify me when new releases are available (no standing order will be created)